Outside Market Forces Weakening For Sugar
Cocoa’s whipsaw price action last week led to 3 negative daily results in a row as near-term demand concerns remain a major source of pressure. For the week, however, May cocoa finished with a gain of 4 points which was a second positive weekly result in a row.
Last week’s choppy price action in the coffee market has left prices more than 7.50 cents below their 4-month high from mid-January as near-term demand concerns remain a source of pressure.
March cotton closed sharply lower on Friday, but it stayed within Thursday’s range-up day throughout the session. Cotton was relatively strong when compared with the collapse in grain markets.
While sugar has seen a positive shift in global demand prospects during the past few months, prices may have gotten ahead of themselves with their mid-January updraft. Unless the market can find fresh carryover support, sugar prices are likely to remain on the defensive.
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